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Evaluation of a New Supply Strategy for a Fashion Discounter

In: Operations Research Proceedings 2012

Author

Listed:
  • Miriam Kießling

    (University of Bayreuth)

  • Tobias Kreisel

    (University of Bayreuth)

  • Sascha Kurz

    (University of Bayreuth)

  • Jörg Rambau

    (University of Bayreuth)

Abstract

Fashion discounters face the problem of ordering the right amount of pieces in each size of a product. The product is ordered in pre-packs containing a certain size-mix of a product. For this so-called lot-type design problem, a stochastic mixed integer linear programm was developed, in which price cuts serve as recourse action for oversupply. Our goal is to answer the question, whether the resulting supply strategy leads to a supply that is significantly more consistent with the demand for sizes compared to the original manual planning. Since the total profit is influenced by too many factors unrelated to sizes (like the popularity of the product, the weather or a changing economic situation), we suggest a comparison method which excludes many outer effects by construction. We apply the method to a real-world field study: The improvements in the size distributions of the supply are significant.

Suggested Citation

  • Miriam Kießling & Tobias Kreisel & Sascha Kurz & Jörg Rambau, 2014. "Evaluation of a New Supply Strategy for a Fashion Discounter," Operations Research Proceedings, in: Stefan Helber & Michael Breitner & Daniel Rösch & Cornelia Schön & Johann-Matthias Graf von der Schu (ed.), Operations Research Proceedings 2012, edition 127, pages 515-520, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-00795-3_77
    DOI: 10.1007/978-3-319-00795-3_77
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